Public sector Canara Bank and private sector Axis Bank have also announced an increase in FD interest rates. The hike in repo rate and CRR was announced by the Reserve Bank this month after two years. Since then, banks are increasing the interest rates on fixed deposits.
New Delhi. The good days of investors investing in fixed deposits are back. All the banks are announcing to increase the interest rates of FD again. In this connection, public sector Canara Bank and private sector Axis Bank have also announced an increase in FD interest rates.
This month, the RBI had announced an increase in the repo rate and CRR (cash reserve ratio) after two years. Since then, banks are increasing the interest rates on fixed deposits. Earlier this year from January, banks started increasing the interest rates of FDs. After the move of the Reserve Bank, it is increasing again.
Axis Bank
According to the information given on the official website of Axis Bank, the third largest private sector bank, interest from 2.5 percent to 5.75 percent is now being given on FDs ranging from 7 days to 10 years. The interest rate on FDs from 9 months to 1 year and 1 year to 15 months has been increased to 4.75 percent and 5.25 percent respectively. Now 5.3 percent interest is being offered on FDs with maturity of more than 15 months but less than 2 years. Axis Bank is giving 5.6 percent interest on FDs of 2 years to 5 years and 5.75 percent on FDs of 5 to 10 years. Senior citizens will get half a percent (0.50 percent) more interest on all term deposits. The new rates have become effective from May 12, 2022.
Canara Bank
Similarly, public sector Canara Bank has also announced a hike in interest rates on fixed deposits up to Rs 2 crore. The bank is now offering 2.9 percent interest on deposits from 7 days to 45 days. On deposits of 46 days to 90 days and 91 days to 179 days, customers will get 4 and 4.05 percent interest respectively. The interest rate on deposits of 180 days to 269 days has been increased from 4.4 per cent to 4.5 per cent. Senior citizens are being given half a percent more interest on all deposits. The new rates have come into effect from May 12.
Similarly, Canara Bank will now pay 5.3 percent interest on 1 year FD. Whereas on deposits of more than 1 year but less than 2 years, 5.4% interest will be given. The rate of interest for more than 270 days and less than 1 year will be 4.55 percent. The bank is now offering 5.45 per cent interest on deposits of 2-3 years, 5.7 per cent for 3-5 years and 5.75 per cent on FDs of up to 5-10 years.
